With the EV market growing 3x faster than the overall two-wheeler segment, HMSI is looking to replicate its success in this new space.
20 Mar 2025 | 2621 Views | By Prerna Lidhoo
With the launch of the Activa e and QC1, Honda Motorcycle & Scooter India (HMSI) is making its much-anticipated entry into India's electric twowheeler market. The Japanese giant is however unfazed by its late arrival, and is confident that timing won’t be a hurdle in a market that saw over ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
With the launch of the Activa e and QC1, Honda Motorcycle & Scooter India (HMSI) is making its much-anticipated entry into India's electric twowheeler market. The Japanese giant is however unfazed by its late arrival, and is confident that timing won’t be a hurdle in a market that saw over 33% growth in 2024.
“There is no late mover disadvantage here. Currently, this market is in a very nascent stage where EVs contribute close to 5-6% in the 2 wheeler space. But it’s one of the fastest-growing segments and this is the right time to enter the market. Our biggest strength is our network, which is spread pan-India,” Yogesh Mathur, director (sales and marketing) at HMSI told Autocar Professional.
With a network of over 6,500 dealers, HMSI is implementing a phased rollout. “Only after they are fully trained and the necessary service infrastructure has been established at each dealership will we introduce the product for sale,” Mathur said. In 2024, the EV market was led by Ola, with 4.08 lakh units, or a 35% market share. TVS followed with 2.20 lakh (19%), while Bajaj Auto sold 1.93 lakh and Ather Energy 1.26 lakh units.
It is clear that as HMSI steps into the EV space, it faces tough competition from well-established players who have already gained a strong foothold in this fast-growing market. “We have a very aggressive target. The EV market is growing three times faster than the overall two-wheeler market. By 2030, we expect EVs to be 20% of the sales. We are aiming for a lion's share, similar to the nearly 28% of the ICE market that we currently hold,” Mathur said.
Dual Strategy
HMSI's strategy focuses on catering to diverse customer needs by offering both swappable and fixed battery solutions. The Activa e features swappable battery technology for greater flexibility and convenience, while the QC1 comes with a fixed battery setup for a seamless riding experience. “We wanted to make sure that we introduce products which cater to different sets of consumers. So, while one is the fixed battery type, the other is for people who do not want to wait for the battery to be charged because that means people have to wait for almost five hours,” he said.
Mathur believes swappable battery technology offers a level of convenience even better than refueling at a petrol station. While the Indian government has issued guidelines for battery swapping, there is no GST support for it. However, with India’s growing younger consumer base and increasing demand for new technologies, he sees strong potential for swappable solutions. The key challenge remains infrastructure: HMSI is setting up battery exchange stations, starting with Bengaluru.
From April, the initiative will expand to Delhi and Mumbai to support the adoption of the Activa e. While battery swapping is often associated with commercial and last-mile mobility, HMSI is primarily targeting personal mobility users—especially in cities like Bengaluru, where traffic congestion drives demand for efficient commuting solutions. Urban markets are expected to see faster adoption of HMSI’s new EV range, while rural areas may take longer due to existing economic challenges.
Without proper support, rural demand recovery remains uncertain and could take another 2–3 years to return to pre-2019 levels. “Rural markets are still under stress. So, till the time there is proper support coming into the rural areas, it seems difficult that it will start progressing. Hopefully this year looks like it is brighter even for the rural markets since a lot of infrastructure projects will start coming in, especially in rural areas,” he said.
Mathur said HMSI has been prepared to grow independently from the outset without relying on government support. With the EV industry reaching around 1.2 million units, Mathur believes it is maturing and will no longer require subsidies to sustain growth.
He adds that with a clear strategy, a strong product lineup, and a focus on self-sustained growth, HMSI is positioning itself as a formidable player in India’s evolving EV landscape. As the industry matures and consumer adoption increases, Mathur is confident that its late entry will not be a setback but an opportunity to leverage its legacy in the two-wheeler market.